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If interest rates in India rise relative to interest rates around-(Answered)

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Question

If interest rates in India rise relative to interest rates around the world, the world value of the rupee would ____________.

decrease
increase
stay the same


Flag this QuestionQuestion 21pts From chapter 8 (chapter 21 in the combined volume), we know that the primary cause of inflation is expansion of the money supply. In this chapter, we learn an additional side effect of monetary expansion. What is this effect?

Currency appreciation
Currency depreciation
Current account surplus
Current account deficit


Flag this QuestionQuestion 31pts The price of a dozen roses in the United States is about $30. If $0.559 U.S. dollars can purchase 1.00 Turkish Lira, how much does the same dozen roses cost in Turkey, if purchasing power parity holds?

16.78 lira
30.00 lira
53.64 lira
55.90 lira


Flag this QuestionQuestion 41pts Every year, thousands of spring breakers flock to Mexico in search of a good time. They exchange millions of U.S. dollars for Mexican pesos. The Mexican central bank anticipates this and acts to keep its currency stable at the present exchange rate. These actions are consistent with:

a decrease in demand and supply
a decrease in demand and an increase in supply
an increase in demand and a decrease in supply
an increase in demand and supply


Flag this QuestionQuestion 51pts For the following transaction determine (a) whether the transaction will be recorded in the U.S. current account or capital account, and (b) whether the entry will be positive or negative.


A resident of England buys an airplane ticket to the United States on Delta Airlines, and American company. This affects the ___________ account with a ____________ entry.

capital; negative
capital; positive
current; negative
current; positive


Flag this QuestionQuestion 61pts For the following transaction determine (a) whether the transaction will be recorded in the U.S. current account or capital account, and (b) whether the entry will be positive or negative.


The U.S. government sells U.S. Treasury securities to China. This affects the ___________ account with a ___________ entry.

capital; negative
capital; positive
current; negative
current; positive


Flag this QuestionQuestion 71pts For the following transaction determine (a) whether the transaction will be recorded in the U.S. current account or capital account, and (b) whether the entry will be positive or negative.


Nissan, a Japanese corporation, sells 10,000 cars to the U.S. This affects the ___________ account with a ___________ entry.

capital; negative
capital; positive
current; negative
current; positive


Flag this QuestionQuestion 81pts If $30 can buy a dozen roses in the United States, and purchasing power parity holds, then $30 should also be enough to buy a dozen roses in Turkey?or, more specifically, the Turkish lira equivalent of $30 should be sufficient to buy a dozen roses in Turkey. If purchasing power parity does not hold between the two nations, how might you account for the discrepancy? Select all that apply.

identical roses
non-identical roses
roses are not perfectly tradable
transportation costs
prices may not have fully adjusted




Can you look over these and let me know if I have any wrong before I submit it I have about 30 minutes please.


If interest rates in India rise relative to interest rates around the world, the world value of the

 

rupee would ____________.

 

decrease

 


 

increase

 


 

stay the same

 


 

Flag this QuestionQuestion 21pts...

 

Paper#9209882 | Written in 27-Jul-2016

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